How BG Group plc (BG) Measures up as a GARP Investment

Indeed, broker Liberum Capital expects group production to advance 15% per year in both 2014 and 2015, to 728 million barrels of oil equivalent per day and 841 million barrels of oil equivalent per day respectively.

BG Group plc (LON:BG) faces the very real prospect of continued oil price volatility and increasing capex costs which continue to beset the entire oil industry. But I believe that an expected surge in production volumes from next year onwards should still drive earnings skywards despite these issues.

There’s gold in them there wells
BG Group plc (LON:BG) — like all natural resources plays — comes attached with a heightened risk profile. Drilling for oil and minerals mining is often a ‘hit and miss’ business where the timing, and indeed quantities, of potential payloads are extremely unpredictable.

The article How BG Group Measures up as a GARP Investment originally appeared on Fool.com.

Fool contributor Royston Wild has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.

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